Google Hits Historic $400B Revenue Amid Massive AI Push: 5 Things You Should Know

Google, on Wednesday, announced the quarterly financial results for Q4 2025. During the earnings call with investors and analysts, company CEO Sundar Pichai revealed that Google's parent Alphabet crossed $400 billion (roughly Rs. 36.07 lakh crore) in annual revenue for the first time. The massive revenue milestone comes on the back of the company's massive push into artificial intelligence (AI) technology, and increased demand from consumers and enterprises. For the specific quarter, Pichai said the release of the Gemini 3 AI model was a major milestone. Here are the top five takeaways from the earnings call.

Google Q4 2025 By Numbers

In the fourth quarter of 2025, Google's overall revenue was recorded at $113.8 billion (roughly Rs. 10.26 lakh crore), with a growth of 18 percent year-on-year (YoY), the company said in a blog post. Breaking it down, the Google CEO said that revenue from Search grew by 17 percent YoY, whereas YouTube's annual revenue crossed $60 billion (roughly Rs. 5.41 lakh crore) across ads and subscriptions. The company also stated that it has amassed 325 million paid subscriptions across consumer services and has seen strong adoption for Google and YouTube Premium.

Pichai also revealed that Google sold more than eight million paid seats of Gemini Enterprise in this quarter. Notably, the offering was launched four months ago, highlighting its strong adoption. The company expected its 2026 capital expenditure (CapEx) to be between $175 billion (roughly Rs. 15.78 lakh crore) and $185 billion (roughly Rs. 16.68 lakh crore).

Gemini Continues to Be a Major Revenue Driver

During the earnings call, Pichai revealed that the launch of the Gemini 3 AI model was a major milestone for the company in the fourth quarter of the previous year. Additionally, the CEO said that the Gemini app now has more than 750 million monthly active users (MAUs). “We are also seeing significantly higher engagement per user, especially since the launch of Gemini 3 in December,” he added.

Notably, Pichai said that Gemini 3 Pro has processed an average of three times as many daily tokens as Gemini 2.5 Pro, its predecessor. Gemini-powered development platform Google Antigravity, which was also launched in Q4 2025, now has more than 1.5 million weekly active users, the CEO said.

Google's Full-Stack AI Infrastructure Enables Cost Optimisation

Ever since the start of the AI race, Google has leveraged its full-stack infrastructure. The company has its own data centres powered by in-house tensor chipsets, builds its own models, and distributes the AI features via its enterprise offerings, Android ecosystem, and Pixel devices.

During the earnings call, Pichai said that the tech giant has expanded its compute options by securing Nvidia's Vera Rubin GPUs alongside its own TPUs. “In December, we announced our intent to acquire Intersect, which provides data centre and energy infrastructure solutions,” he added. Google said that it was able to lower Gemini serving unit costs by 78 percent in 2025 via model optimisations, efficiency, and utilisation improvements.

YouTube Remains Major Revenue Contributor

With more than $60 billion (roughly Rs. 5.41 lakh crore) in annual revenue, YouTube is consolidating its position in the video streaming market. While the CEO did not share subscription numbers, he said, “We continue to see strong subscription revenue growth across YouTube, particularly YouTube Music Premium.” The company also confirmed that it will soon launch new YouTube TV plans, with options for 10 genre-specific packages.

Highlighting the popularity of the platform when it comes to podcast consumption, Pichai mentioned that in October 2025, viewers watched more than 700 million hours of podcasts on living room devices, marking a growth of 75 percent YoY. AI features on the platform are also witnessing a strong adoption. The CEO mentioned that more than 20 million viewers used the new Gemini-powered Ask tool in October to learn more about the content they watched.

Focus on Google Cloud

The Google CEO revealed that its cloud services witnessed growth in revenue, operating margin, and backlog in Q4 2025. Google Cloud is said to have forged deals worth more than $1 billion (roughly Rs. 9,018 crore) in 2025, which is more than the combined deals forged in the previous three years.

“Nearly 75 percent of Google Cloud customers have used our vertically optimised AI[..]These AI customers use 1.8 times as many products as those who do not, enabling us to diversify our product portfolio, deepen customer relationships and accelerate revenue growth,” Pichai said.

Additionally, Pichai revealed that Gemini Enterprise managed more than five billion customer interactions in Q4, growing 65 percent YoY. During the same period, revenue from AI solutions built by the company's partners also increased nearly 300 percent YoY, resulting in commitments from the top 15 software partners growing 16X YoY.